Failed Bitcoin exchange MtGox was Wednesday placed in administration by a Japanese court, with an order for bankruptcy expected to be issued soon, its administrator and chief executive said.
"The Tokyo District Court decided today to dismiss the application for commencement of a civil rehabilitation and at the same time, an order for Provisional Administration was issued and Attorney-at-law Nobuaki Kobayashi (Supervisor and Examiner under the Civil Rehabilitation Procedure) was appointed Provisional Administrator,'' a statement from Mark Karpeles said, AFP reports.
The move means Karpeles, the controversial founder of what was at one time the world's biggest trading place for the virtual currency, will cede control of the company to Kobayashi.
"I, as the provisional administrator, will administer the assets of the Company under the supervision of the Tokyo District Court,'' said a statement in Kobayashi's name posted on the MtGox website.
"I will strive to fairly and equitably administer the company's assets, both domestically and internationally, by attempting to utilize certain foreign procedures, including a Chapter 15 filing in the United States of America.
"The future outlook is that, although it is subject to the decision by the Tokyo District Court, it is expected that the commencement of bankruptcy proceedings will be ordered.''